AI literacy is the ability to use AI knowledgeably, critically and responsibly. It is the concept that Article 4 of the EU AI Act is built on.
Knowing the tools is only part of it. You also need to judge when AI helps and when it does not. That requires being able to describe a task precisely, assess an answer critically, know about hallucinations and bias, and know which data must not be shared.
The competency looks different from role to role. A leader needs to judge where AI changes the work. An employee needs to use it safely in their own tasks.
In practice
AI literacy comes from training on real tasks. A course can provide a shared foundation, but the competency only grows when it is used and discussed day to day. That is why it belongs under Enablement in the RISE model: how do we learn as an organisation?
The concepts in this glossary run through my AI courses and workshops, where we work with them on your own tasks.